Bad news for Microsoft 365 business users. The Office Suite is getting a price hike on July 1.
“We’re sharing these updates now to give customers plenty of time to plan,” it says.
Microsoft justifies this increase by pointing to all the features and “innovations” it has added to productivity programs. It said, “In the past year, we’ve released more than 1,100 features across Microsoft 365, Security, Copilot and SharePoint.
(Credit: Microsoft)
Depending on the plan, price increases can increase by $1 to $3 more per month, while others will remain unchanged. Meanwhile, government users can also expect an increase in fees, which could amount to a 5% to 13% increase.
(Credit: Microsoft)
In January, Microsoft announced that it was raising the price of the consumer-based Microsoft 365 Personal plan to $9.99 per month, up from $6.99. The Microsoft 365 Family plan also went from $9.99 to $12.99 per month. That said, customers can switch back to original pricing by switching to Classic plans, which ended the CoPilot integration.
Microsoft 365 has received rave reviews from PCMag. But it faces competition from Google’s Workspace and Zoho Office, as well as the free alternative LibreOffice. So, affected users may flee to other platforms when there are signs that Microsoft is struggling to make big bets on AI.
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Still, Microsoft is banking on a whole host of feature updates and security improvements to help retain subscribers. The company noted that its AI assistant, KopeltChat, began offering a unified experience across various Office programs starting in September. In addition, Microsoft is developing additional security protections to Microsoft Defender to flag more malware and phishing threats.
“Collectively these features add value to our suite in security, productivity and management,” the company adds. It has also published a graph to highlight all the benefits that Microsoft 365 Business users receive under different monthly plans.
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Michael Kahn
Senior reporter
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I have been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite Internet services, cybersecurity, PC hardware and more. I am currently based in San Francisco, but previously spent over five years in China, covering the country’s technology sector.
Since 2020, I’ve covered the launch and explosive growth of SpaceX’s StarLink satellite Internet service, writing 600+ stories on availability and feature launches, but also regulatory battles over expanding satellite constellations, battles with rival providers like AST SpaceMobile and Amazon, and efforts to expand satellite-based mobile service. I’ve combed through FCC filings for the latest news and reached out to remote corners of California to test StarLink’s cellular service.
I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. Earlier this year, the FTC forced Avast to pay $16.5 million for secretly harvesting and selling its personal information to third-party clients, as revealed in my joint Investigation Along with the motherboard
I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. Now I’m following how President Trump’s tariffs will affect the industry. I’m always eager to learn more, so please jump into the comments with feedback and send me pointers.
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